The accompanying abridged standalone financial statements, which comprise the abridged
standalone balance sheet as at March 31, 2016, the abridged standalone statement of profit
and loss and abridged standalone cash flow statement for the year then ended, and related
notes, are derived from the audited standalone financial statements of Jindal Steel &
Power Limited (the Company) as at and for the year ended March 31, 2016. We
expressed a qualified audit opinion on those standalone financial Statements in our report
dated May 4, 2016.

The abridged standalone financial statements do not disclosures required by the
accounting principles generally accepted in India, including the Accounting Standards
notifiedunder 133 of the Companies Act, 2013 ("the Act"), read with Rule 7 of
the Companies (Accounts) Rules, 2014 issued by Ministry of Corporate Affairs. Reading the
abridged standalone financial statements, therefore, is not a substitute for reading the
audited standalone financial statements of the Company.

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Companys Board of Directors is responsible for the preparation of a summary
of the audited standalone financial statements in accordance with the Accounting 133 of
the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 issued by Ministry of
Corporate Affairs and accounting principles generally accepted in India.

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on the abridged standalone financial
statements based on our procedures, which were conducted in accordance with Standard on
Auditing (SA) 810, "Engagements to Report on Summary Financial Statements"
issued by the Institute of Chartered Accountants of India.

QUALIFIED OPINION

In our opinion, the abridged financial statements derived from the audited standalone
financial statements of the Company as at and for the year ended March 31, 2016 are a fair
summary of those financial statements, in accordance with the Accounting Standards
specified under Section 133 of the Act, read with of the Companies (Accounts) Rules, 2014
and accounting principles generally accepted in India. However, the abridged financial
statements are misstated to the equivalent extent as the audited of the Company as at and
for the standalonefinancial year ended March 31, 2016.

a) As detailed in note 40 (i) of the standalone financial statements, based on the
Order of Honble Supreme Court of India, the Company paid an additional levyof Rs 295
per metric ton on gross coal extracted from operational mines. Through March 31, 2015,
such levy on the gross extraction amounts to Rs 2,082.23 crore. Based on legal opinion,
the Company had recorded Rs 807.77 crore in the previous year as an exceptional item
representing the levy on net extraction (run of shale, rejects and ungraded middling) of
coal. Had the gross levy been recorded, net loss before tax for the year ended March 31,
2016, would have been higher by Rs 1,274.46 crore and reserves and surplus as at March 31,
2016, would have allthe beenlower by Rs 1,274.46 crore. In respect of above
matter, our audit report for the year ended March 31, 2015 was similarly qualified.

b) As detailed in note 40 (ii) of the standalone financial statements and referred
above note, the Company has not made adjustment in the net carrying value of investment
made in mining assets including land, infrastructure and clearance, etc., of Rs 425 crore
as at March 31, 2016, pending finalization of the compensation claim filed by the Company
with the Government authorities. Accordingly, we are unable to comment on the matter
including any consequential adjustments that may be required in this regard in these
financial statements. In respect of above matter, our audit report for the year ended
March StandardsnotifiedunderSection 31, 2015was similarly qualified.

Our adverse audit opinion stated that except for the effects of our observation stated
in (a) above and possible effects of our observations in (b) above, those
financialstatements give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles generally accepted
in India, of the state of affairs of the Company as at 31st March 2016, and its loss and
its cash flows for the year ended on that date.